Shafaq News / Telecoms giant Ericsson has said it is facing fresh fines after it admitted it may have paid off the terrorist group Islamic State.
Penalties would be linked to a corruption scandal and a failure to let US authorities know, the company said.
The sum of any fines “cannot at this time be reliably estimated,” the firm said on Thursday morning.
Shareholders have previously refused to vote against discharging the board liability for supposed Islamic State payments based on “unusual expense claims in Iraq”.
The decision means that top bosses could be held personally liable under Swedish law.
In an update, Ericsson said on Thursday that it could not say too much about the “historical events” covered in the investigation, due to the process being “ongoing.”
However, the company said it was “fully committed” to working with the US Department of Justice. “Our work to further strengthen our Ethics and Compliance program, controls and our culture remains a top priority,” the firm said.
“It was actually our improved compliance program that allowed us to identify the misconduct in Iraq that started at least back in 2011,” the update explained.
In first quarter results published on Thursday, the telecoms firm said its group organic sales grew by three per cent year on year. This growth was driven by networks in North America and in Europe and Latin America.
Börje Ekholm, president and CEO of Ericsson, said: “We continue to execute on our strategy to be a leading mobile infrastructure provider and to establish a focused enterprise business. We see strong business momentum and our investments in technology and a resilient supply chain have allowed us to continue to win market share and deliver on customer commitments in spite of global supply chain challenges.”
Earlier this month, it was announced that Ericsson senior vice president Peter Laurin would be leaving the company to pursue other career opportunities.
